When you have a need for cash you may be thinking about turning to one of the thousands of online cash advance lenders available to you in order to obtain the money you need. However, there are only a few valid reasons why you should be considering turning to an advance cash loan. For example, if you are in a dire medical emergency, or have a need for money without any other way of obtaining it then a cash advance loan can come in handy. The truth is that there are many more stupid reasons to use cash advance loans then there are smart ones. Here are seven of the stupidest reasons to use a cash advance loan.
1. Car Loan Repayment
Using a payday loan to repay another loan is one of the worst things you can do. It may seem like a good idea to obtain one of these loans in order to avoid missing a payment on your car loan, however this is far from the case. It is a better idea to ask your employer for a pay advance that can be taken out of your next pay, as you will avoid obtaining a cash advance for more money than you are able to repay and without an extremely high interest rate.
2. Emergency Car Repair
If you damage your car and need it repaired, but do not have the money to repay it at the moment then you are better off taking the bus or catching a ride with someone else until you can afford to fix your car. A cash advance loan to make car repairs is simply not worth the money you would lose from the high interest rate of a cash advance loan.
3. Travel of Any Kind
Traveling is usually a luxury and not a necessity, and so obtaining a cash advance loan for it is usually not a savvy financial move. However, if there is an emergency that requires that you travel and you absolutely do not have the money to do so then this type of loan can come in handy as a last resort way of getting where you need to go for such things as a family emergency or a funeral. Nevertheless, for planned trips such as vacations and weddings a cash advance loan should not be used. Instead, it is a good idea to start saving money in order to be able to buy your ticket without obtaining a loan.
4. Overdraft or Credit Card Debt
You may be tempted to keep on top of your credit card debt by using a cash advance loan, however this is absolutely the worst ways you can use one of these loans. The interest rate of a cash advance loan is going to be much worse then that of your credit card, and chances are if you are unable to repay your credit card bill then you will surely not able to repay a cash advance loan when the time comes, and the interest rates will lead you into a spiral of debt that will be tremendously difficult to get out of.
5. Home Improvements and Repair
If you want to improve or repair your house than you need to talk to your loved one about all of your options and come up with a solid and organized plan that mainly involves putting money away into a fund that you will then use on your home when you have saved enough money. It is not a good idea to put yourself at risk of falling into debt in order to improve or repair your home. Instead it is important to be patient.
6. Wedding Expenses
We all know how expensive weddings can be, and it may seem like a good idea to go all out and get a cash advance loan in order to fund your dream wedding, however the last thing you want to do is start your married life in debt. Instead, it is recommended that you and your fiance take the time to save for your wedding so that you can rest easy knowing that you can walk away from your nuptials without a cloud of debt over your head.
7. Bankruptcy or Bad Credit
It is true that if you have declared bankruptcy or have very bad credit than you won’t be able to qualify for a traditional loan. However, that doesn’t mean you should necessarily turn to a cash advance loan instead. If you are already in trouble with bad credit and bankruptcy then you shouldn’t be digging your financial hole deeper than it needs to be.
There are certainly some valid reasons when a cash advance loan does come in handy such as emergency medical bills and when you need money right away and have no other way of obtaining it, but the reasons listed above should be avoided at all costs.